Chip maker Altera Corp. raised its fourth-quarter revenue guidance Monday citing improving market trends and strong sales to telecommunications equipment makers.
The company expects revenue to grow by 15 percent to 18 percent above the third-quarter's $286.6 million in sales. Altera's previous guidance was for sales growth of 6 percent to 10 percent.
Analysts, on average, are expecting revenue of $310.3 million, according to a poll by Thomson Reuters. That would represent about an 8 percent increase sequentially.
Altera said sales to wireline and wireless telecommunications equipment manufacturers "will likely be the largest contributor to fourth-quarter growth as demand for Chinese and Indian deployments has continued to improve."
Altera plans to report the quarter's results on Jan. 26.
Shares jumped 77 cents, or 3.7 percent, to $21.80 in after-hours trading. The stock had closed earlier up 12 cents at $21.03.